A

PROJECT REPORT
ON
INVESTMENT OPPORTUNITIES & TREND OF
INVESTMENT
AMONG
WORKING PROFESSIONALS A case Study on Share Khan
Ltd. Conducted at Asansol & Durgapur region
FOR
SHAREKHAN LTD.

DECLARATION
0

I, Amit M.Maurya of Master of Management Studies (Semester III) of

Babasaheb Gawde Institute of Management Studies (BGIMS), hereby
declare that I have successfully completed this project on Investments
Opportunities & Trend of Investment among Working Professionals as a part
of my Summer Internship. The information incorporated in this project is true
and original to the best of my knowledge.

Signature

ACKNOWLEDGEMENT
1

I hereby take opportunity to thank the people who have helped me a lot
during the project work of two months. The successful accomplishment of this
project, involves sincere guidance from my Internal Project guide Prof.T
Parmar and Prof S.Kutty their excellent guidance, encouragement and patience
made possible the successful completion of project. I would also like to thanks
our director, Atul Thakurdas, for his sincere guidance, in the accomplishment of
my project. It gives me pleasure to present the project report on Investment
Opportunities & Trend of Investment among Working Professionals for
Sharekhan Ltd. It was altogether a different and wonderful experience to be
there in Sharekhan Securities Ltd. as a summer trainee.
I specially want to thank my external guide Swanand Kale & Mr. Nitesh
Bang who was very cooperative with me during the entire project work. They
helped me to acquire the material regarding the information of various
investment options, and helped me to understand all those. Last but not the least
I am thankful to the whole staff of Sharekhan Ltd. who directly or indirectly
helped me throughout the project tenure.

CONTENTS
Acknowledgement
2. Executive Summary

4-6

3. Objectives of the Study

4. Scope of the Study

5. Company Profile

9-19

5.1 Introduction of the Company

9-13

5.2 Products & Services

14-20

5.3 Competitors

21

6. Theoretical Background

22-36

6.1 Consumer Behavior

22-23

6.2 Investing

24-36

7.

Research Methodology

37-40

8.

Data Analysis

41-53

9.

Findings

54-55

10. Recommendations

56-57

11. Conclusion

58

12. Limitations

59-60

13. Bibliography

61-62

14. Appendix

63-65

Executive Summary
This project represents information regarding various investment options
available in the market and awareness of Sharekhan as a financial service
provider. The main objective of the project is to Study what is risk and return
combination and whether the general public is aware of the various investment
options available and the risk and return associated with them.
Other objectives include:
To conduct a survey for the company to find about the awareness of various
investment options.
To find out the awareness among working professionals about the awareness
of Sharekhan as a Financial Service provider.
To understand the trend of investment among the working professionals.
To learn the behavior of consumers in respect of the various investment
opportunities available.
This research work will also help in future in understanding the behavior of
customer
(Especially the professionals with handsome salary) toward investment. For
execution of the project, methodology adopted is the collection of data through
4

questionnaire, processing and analyzing the data. The people who were selected
for this research are professionals having good salary.
The area of the project work is Asansol & Durgapur city. Sharekhan are
the one of the personalized service providers offering a range of investment
services depending on the customer needs and wants. As far as the brand
awareness is considered the Karvy tops the list so, the companies have to put
the extra effort on its awareness, and also the company has to take maximum
efforts on building its marketing strategy.
According to the respondents the quality of the service is very important. So the
company should project itself as a brand in the market that gives end user the
best quality of service with handy operations.
Most of the respondents have their own personal, consultant or company
consultants. Sharekhan have to differentiate their services from other consultant
effectively by delivering value added services to its customers.
Organizations have to concentrate on direct marketing activities. The
consultancy should develop its long-term relationship with the customers. The
consultancy must give much more emphasis on creation of customer who make
repurchase.

The maximum amount of awareness which has been generated is through

newspaper, magazine, internet and word of mouth. So the company should take
care of it as it can be one of the potential media for advertisements.
The maximum respondents want to invest in tax planning and second preference
for the mutual fund, so the consultancy can decide its strategy accordingly. The
consultancy has to consider the factors for investments of respondents,
effectively before making the strategy.
The company should increase the level of interaction between the customer and
the Consultancy.
The organization should focus on developing long-term relationship with the
customers.
According to the respondents the quality of the service is very important. So the
company should project itself as a brand in the market that gives end user the
best quality of service with handy operations.

Objectives of the Study

6

The objective conducting this project exercise was to get useful insight about
the investment sector. I have prepared this report with some specific
objective. The objectives are as under
To conduct a survey for the company to find about the awareness of various
investment options.
To find out the awareness among working professionals about the awareness
of Sharekhan as a Financial Service provider.
To understand the trend of investment among the working professionals.
To learn the behavior of consumers in respect of the various investment
opportunities available.
To study the risk and return combination associated with the various
investment opportunities and whether the general public is aware about
them.

Scope of the Study

7

There is a wide scope of study on this research work. This

project can be used by different students to various investment
opportunities available and way to save tax but as my project duration
was only for 35 days, I have restricted myself only to working
professionals working in Asansol & Durgapur city . It would have
been impossible for me to have an analysis of all people, and also
people of other area i.e. outside Asansol, in just 35 days.
This research work will also help in future in
understanding the behavior of customer toward investment.

Company Profile

Sharekhan is online stock trading company of SSKI Group, provider of

India-based investment banking and corporate finance service. Sharekhan is one
of the largest stock broking houses in the country. Shri Shantilal Kantilal
Ishwarlal Securities Limited (SSKI) has been among Indias leading broking
houses for more than a century.

Sharekhan Ltd is India's leading online retail broking house with its
presence through 1288'Share Shops' in 398 cities. It has a client base of 1.5
Corers. Launched on 8th February, 2000 as an online trading portal, Sharekhan
offers its clients trade execution facilities for cash as well as derivatives,
on BSE and NSE, depository services, mutual funds, initial public
offerings (IPOs), and commodities trading facilities on MCX and NCDEX.
Besides high quality investment advice from an experienced research team
Sharekhan provides market related news, stock quotes fundamental and
statistical information across equity, mutual funds, IPOs and much more.
Sharekhan is also about focus. Sharekhan does not claim expertise in too many
things. Sharekhans expertise lies in stocks and that's what he talks about with
authority. To sum up, Sharekhan brings to you a user- friendly online trading
facility, coupled with a wealth of content that will help you stalk the right
shares.

Experience
10

SSKI has more than eight decades of trust and credibility in the Indian stock
market. In the Asia Money broker's poll held recently, SSKI won the 'India's
best broking house for 2004' award. Ever since it launched Sharekhan as its
retail broking division in February 2000, it has been providing institutionallevel research and broking services to individual investors.

Technology
With their online trading account one can buy and sell shares in an instant from
any PC with an internet connection. Customers get access to the powerful
online trading tools that will help them to take complete control over their
investment in shares.

Accessibility
Sharekhan provides services for investors. These services are accessible through
many centers across the country (Over 650 locations in 150 cities), over the
Internet (through the website www.sharekhan.com) as well as over the Voice
Tool.

Knowledge

11

In a business where the right information at the right time can translate into
direct profits, investors get access to a wide range of information on the contentrich portal, www.sharekhan.com. Investors will also get a useful set of
knowledge-based tools that will empower them to take informed decisions.

Convenience
One can call Sharekhans Dial-N-Trade number to get investment advice and
execute his/her transactions. They have a dedicated call-center to provide this
service via a Toll Free Number 1800-22-7500 & 39707500 from anywhere in
India.

Customer Service
Its customer service team assists their customer for any help that they need
relating to transactions, billing, dmat and other queries. Their customer service
can be contacted via a toll-free number, email or live chat on
www.sharekhan.com.

Investment Advice

12

Sharekhan has dedicated research teams of more than 30 people for

fundamental and technical research. Their analysts constantly track the pulse of
the market and provide timely investment advice to customer in the form of
daily research emails, online chat, printed reports etc.

PRODUCT & SERVICES

A Sharekhan outlet offers the following services:

13

 Online BSE and NSE executions (through BOLT & NEAT terminals)
Free access to investment advice from Sharekhans Research team
Sharekhan Value Line (a monthly publication with reviews of
recommendations, stocks to watch out for etc)
Daily research reports and market review (High Noon & Eagle Eye)
Pre-market Report (Morning Cups)
Daily trading calls based on Technical Analysis
Cool trading products (Daring Derivatives and Market Strategy)
Personalized Advice
Live Market Information
Depository Services
Derivatives Trading (Futures and Options)
IPOs & Mutual Funds Distribution
Internet-based Online Trading: Speed Trade

14

TYPES OF PRODUCTS
Classic Account
Fast trade Account
Trade Tiger

1. Classic Account
The features about classic account are It is basically used for beginners i.e. Fresher
Here the transactions can be done in BSE, NSE and F&O.

There can be a market watch.

Here we can make four templates i.e. folders.
You can add 20 scrips in each template.
Here you can add minimum 20 scrip and maximum 100 scrip.

15

 Top gainers, Top losers, Top traded equities and Top traded funds are the

special links available in this.

It gives maximum access.
You can keep lump sum amount in the account.
There is a link which is- whats in, whats out
A system required is Windows XP, 2000, IE 6.0.

2. Fast trade Account

The features about fast trade account are We can make five templates.
You can monitor 125 companies.
Systems required here are Windows XP, 2000, IE 6.0 and Java.

You can also buy Mutual funds and IPO online.

You can also monitor circuits.
You can see the market depth i.e. the logic of demand and supply.
It will help to decide whether to buy or not.
It can also add trigger as in it works as a reminder.
16

 This online trading platform is an applet- based application that

provides live streaming quotes from BSE and NSE.
Get live market prices and market statistics like best bid price,
quantity, best offer price and quantity etc. for chosen stocks.

3. Trade Tiger

17

Trade Tiger is an application that brings you the power of a brokers terminal,
right from your desktop.
Trade on multiple exchanges {NSE, BSE, MCX, NCDEX} from a
single screen.
Customize market watches by scripts or sectors and view them on a
single screen.
Get access to technical tools and trade like a pro.
4. Invest Tiger
This account allows you to trade through website and is suitable for
retail investors.
Online trading website also comes with a Dial-n-Trade service that
enables to buy and sell shares by calling dedicated toll-free number
1-800-22-7050.
Tie ups with Banks

Sharekhan has tied up with ten banks to facilitate the transfer of money from
saving account to Dmat account and vice versa .and by only these banks one
can transfer the money by e-banking .
AXIS Bank
Bank of India
Citi Bank
HDFC
ICICI Bank
IDBI Bank
IndusInd Bank
Oriental Bank of Commerce {OBC}
Union Bank of India
Yes Bank
TYPES OF PLANS

18

Advance

Brokerage

Brokerage
750
1000
2000
6000
10000
18000
30000
60000
100000

Intraday
10 paise
9 paise
7 paise
5 paise
4 paise
4 paise
3 paise
2 paise
1.5paise

Brokerage -Delivery
50paise/50paise
45paise/45paise
40paise/40paise
25paise/25paise
22paise/22paise
20paise/20paise
18paise/18paise
15paise/15paise
10paise/10paise

EXPOSURE

In Sharekhan one can get 4 times exposure on cash and on assets one
can gets 2 times.
Sharekhan gives money only for A group and B group companies.
Only Blue-chip companies get exposure and not for x group companies.
NOTES

In Sharekhan account opening is free.

First years maintenance charge is zero.
Second years maintenance is Rs 300.

Comparison with Competitors

Reliance:
Here the problem is that any order you place has to be cleared by
2.30pm.
No exposure is given here.
There tie-ups with only two banks i.e. HDFC and IDBI.
In Reliance per call is Rs15 extra.
ICICI:
It has a huge client base.
Here per call charge is Rs 25.
In ICICI you can only access one company at that time.
There tie up is only one bank that is ICICI.
There is high brokerage for delivery is 0.75 paise and intraday is 0.25
paise.
There is no exposure.
Annual charges are Rs 500.

19

THEORETICAL BACKGROUND
CONSUMER BEHAVIOR - A THEORETICAL INPUT
"The most important thing is to forecast where customers are moving and
to be in front of them." - Kotler
The aim of marketing is to meet and satisfy target customers needs &
Wants. The field of Consumer Behavioral studies how individuals, grows, and
organizations. Select, buy, use & dispose of goods, services, ideas or experiences to satisfy their needs & desires.
Understanding consumer behavior and "knowing customers" is never
simple .Customers may say one thing but do another. They may not be in touch
with their deeper motivations. They may respond to influences that change their
minds at the last minute.
Consumer behavior is a process and purchase is only one stage in the
process. There are many underlying influences ranging from internal motivations and attitudes to social influences of various kinds. Yet, motivation and
attitude can be understood through research. Perfect predication is never possible, but properly designed and used research efforts can significantly lower the
risk of marketing failure.
20

Consumer behavior is related to an individual person (micro behavior)

where as consumption behavior relates to the mass or aggregates of individuals
(macro behavior). The study of consumer behavior always focuses on the
decision process of the individual consumer or consuming unit, such as the
family. In contrast, the study of consumption behavior is concerned with
description & explanation of the behavior of aggregates of consumer or
consuming units, again at a given time or over a period of time.

Consumer Behavior Influencing Investment Pattern

Usually before investment consumers go on for a detailed study of each
and every option available to them. Often they want to go on for those options
which involves less risk and that will give more profit. Usually before investing
anywhere they like to consult those to whom they rely and those who have also
invested in financial services.

21

INVESTING
An investment operation is one which, upon thorough analysis promises safety
of principal and an adequate return. Operations not meeting these requirements
are Speculative

Types of Investment.
A) Fixed Return Options
B) Variable Return Options
C) Conventional returns options
A.) Fixed Return Options

i) Post Office Monthly Income Scheme

In this scheme, an investment can be made by individual in single or joint
names up to a maximum of Rs 9lakhs (Rs 4.5lakhs per person) with an interest
of approximately 10.5% in a monthly income scheme. In addition this
investment will fetch you a taxable bonus of 8% on the deposit maturity (i.e.
after 6 years). Premature withdrawal is allowed after one year with a discount of
5% on the amount deposited as a penalty and after 3 years without any discount
on the bonus. Interest qualifies for deduction under section 80L. Only
individuals can open the account (either single or joint). The post-office
monthly income scheme (MIS) provides for monthly payment of interest
22

income to investors. It is meant for investors who want to invest a sum amount
initially and earn interest on a monthly basis for their livelihood. The MIS is
not suitable for an increase in your investment. It is meant to provide a source of
regular income on a long term basis. The scheme is, therefore, more beneficial
for retired persons.
ii) Other Post Office Schemes
a) National Saving Certificate (NSC):
National Savings Certificates (NSC) are certificates issued by Department
of post, Government of India and are available at all post office counters
in the country. It is a long term safe savings option for the investor. The
scheme combines growth in money with reductions in tax liability as per
the provisions of the Income Tax Act, 1961. The duration of a NSC
scheme is 6 years. NSCs are issued in denominations of Rs 100, Rs 500,
Rs 1,000, Rs 5,000 and Rs 10,000 for a maturity period of 6 years. There
is no prescribed upper limit on investment. Rs. 1000 becomes Rs. 1601
after 6 years at a compounded yield of 8.16% with tax benefits under
section 80L and 88. No premature withdrawal is allowed. Interest accrued
annually is also reinvested in this scheme and also qualifies for up to
15/20 % rebate under section 88. There is no tax deduction at source.
b) Kisan Vikas Patra

23

Kisan Vikas Patras is a safe and long term investment option backed by
the Government of India which provides interest income similar to
bonds. The title of the scheme makes some misconception that it is only
meant for farmers. But anyone can go for Kisan Vikas Patra. KVP is
beneficial for those looking for a safe avenue of investment without the
pressing need for a regular source of income. Money doubles at the end
of specified period. Money can be doubled in 8 years and 7 months.
There is no upper limit that you can invest. There are no tax benefits for
investments made under this scheme. The rate of interest works out to be
8.41% (2009). Loans are available against Kisan Vikas Patra. Interest is
paid on maturity and cannot be claimed prior to maturity. This can be
purchased jointly by two adults. In the case of loss or stolen Certificate,
the purchaser should report the post office at the earliest. An
application should submit in post office containing the certificate number,
amount, date of purchase /maturity etc. and declare the circumstances
resulting the loss of certificate. In such cases the identity slip comes
useful to get a duplicate certificate. After the verification, the post office
will issue a duplicate certificate. If needed, the purchaser will have to
submit indemnity bond/declaration/Bank verification.

c) Senior Citizens Savings Scheme

24

The government has announced a new senior citizens saving scheme. It

has been launched only through designated post offices from 2 nd august
2004. It is for individuals who have attained the age of 60 years, and who
have retired under voluntary retirement scheme on the date of opening of
an account. The main features of the scheme are that it carries an interest
of 9 % p.a. (taxable) on the deposit. Deposit can be a minimum of Rs.
1000 and a maximum of Rs. 15 lakhs, to be held for a period of 5 years
and extendable for a further 3 years. It can be prematurely withdrawn
after one year with some deductions. Interest qualifies for deductions. A
depositor may open the account in the individual capacity or jointly with
a spouse. Nonresident Indian are not eligible to open an account. This
Scheme is most beneficial to Senior citizens and provides a high rate of
interest as compared to bank interest of 4.5- 4.75%. Although the interest
on the deposit is taxable, the deposits themselves are tax free. As the post
office is a department of the government of India, it is a safe investment.
The principal amount is assured.
iii) Public Provident Fund
The rate for public provident fund is currently 8% pa. This is basically a
long term investment opportunity (maturity 15 years) as entire amount
that is accumulated in this account can be withdrawn entirely only after
15 years. Part withdrawal is allowed only after 7 years. An investor can
put up to Rs 70000 per year in PPF in either lump sum or 12 monthly
25

installments. After 15 years the investor can renew this account for a 5
year period. Interest is totally exempt from income tax. The amount
deposited qualifies for tax rebate under section 88.
iv) Bank Fixed Deposits
Bank fixed deposits yields will vary from bank to bank but are more or
less streamlined. The yields are currently ranging from 4.5 % to 5.5 % per
annum for deposits ranging from 30 days to 3 years. All scheduled banks
are covered under DICGC (deposit insurance and credit Guarantee
Corporation) which mean that up to Rs 1lakh deposited in a bank every
person is absolutely safe and insured even if the bank collapses. Interest
qualifies for deduction from income tax.
v) Government Securities or Gilts
Government securities or gilts are totally secure. Government bonds are
issued by government of India periodically. These are now available in
the secondary market through satellite dealers and banks. They are known
to yield 5 to 6% per annum. Interest exceeding Rs 2500 is liable for TDS
at 10.455%.
vi) RBI Taxable Bonds

26

These are 8% bonds which are taxable. The maturity period is after 6
years and there is no upper limit to investment in these bonds. The
interest accrued on these bonds is taxable under income tax act.
vii) Insurance
There are several types of insurance policies available in the market today
through various players. Life Insurance Corporation (LIC) till recently
held monopoly in this market. Life insurance is the most sought option as
it also offers tax benefits for premier paid. Though insurance is
expenditure, it is now an investment option.
viii) Company Fixed Deposits
Company fixed deposits was a highly popular investment vehicle in the
past. In todays changing scenario where the corporate world has access
to cheaper funds from sources all over the world, the rates of interest
offered by good companies make this a less attractive investment vehicle.
If company fixed deposits are unsecured deposits and if a accompany
goes insolvent; there is very little possibility of investor recovering his
investments.

ix) Infrastructure Bonds

27

An infrastructure bond is a tax saving bond that was innovated in order to

provide funds for the development of key infrastructure projects. Thus,
investors in these bonds apart from material benefit in terms of tax
savings, have the higher satisfaction of having contributed to the
development of the countrys infrastructure.

B) Variable Return Options

Mutual Funds:
Through Mutual Funds companies pools the money of many investors -its shareholders -- to invest in a variety of different securities.
Investments may be in stocks, bonds, money market securities or some
combination of these. Those securities are professionally managed on
behalf of the shareholders,

For the individual investor, mutual funds

provide the benefit of having someone else manage your investments and
diversifying your money that may not be available or affordable to you
otherwise. A mutual fund, by its very nature, is diversified -- its assets are
invested in many different securities.

Shares and Stock Market

Indian Stock Market Overview:
28

The Bombay Stock Exchange (BSE) and the National Stock Exchange of
India Ltd (NSE) are the two primary exchanges in India. In addition,
there are 22 Regional Stock Exchanges. However, the BSE and NSE have
established themselves as the two leading exchanges and account for
about 80 per cent of the equity volume traded in India. The primary
index of BSE is BSE Sensex comprising 30 stocks. NSE has (Nifty)
which consists of fifty stocks. The BSE Sensex is the oldest and more
widely followed index.
Now these days even common people is being aware about the share
market in respect of 4-5 years ago . before 4-5 years ago only affluent
and highly educated people were aware about share market and they used
to invest in companies stock. But the time is changing very rapidly .the
people is being educated about the share market by broking firms , stock
exchange , government, news papers, news channels and by introducing
various new course in schools and colleges . Now common people have
started investing in companies stocks by opening up DMAT account in
various broking firms .
In this type of investment there is no certainty of return on investment
one may lose his money or can gain unexpected amount of return .
In stock market people get two type of return
1. Dividend paid by the company
29

2. Price rise in companys share

These two of benefit get the stock holder only if the company is doing
well and all external environments which affects the stock market is
favorable.
PPM (Private Placement Memorandum)
A private placement memorandum (PPM) is the document that discloses
everything the investor needs to know to make an informed investment
decision. This includes: the offering structure, the share structure of the
company, disclosures about the shares being purchased, company
information, information on company operations, risks involved with the
investment, management information, use of proceeds, information on
certain transactions that could affect the investor, and investor suitability
data. The PPM also includes the subscription agreement which is the
actual "sales contract" for the shares of stock. This is the document that
the investor will sign and send in with their investment funds.
The PPM is very important because it provides the investor with all of the
prescribed data they will need to make an investment decision and
includes the actual documentation to effect the investment transaction.
PPM's are designed as a stand-alone document - meaning that there need
not be other information presented to the investor for them to make an
accurate investment decision. Many companies will attach their business
30

plans to the PPM as supporting documentation. This is an acceptable

practice so long as the information in the business plan properly
corresponds with the information in the PPM and that the investor is
made aware that the business plan alone does not constitute an offer to
sell securities - only the PPM can make that offer.

C) Conventional options
1. Property
Investment in real estate or property is a good long-term investment for
well heeled investors with a large amount of money. People used to
purchase property and when they realize that they are getting maximum
return on their investment sale it off and book the profit. In this type of
investment there is no fix rate of return its depend on the peoples
foresight.

2. Gold and silver

In developing countries, people have often trusted gold as a better
investment than stock and bank deposits. gold and silver have always
been popular in India because historically these acted as a good hedge
against inflation . in that sense these metals have been more attractive
than bank deposits or gilt edged securities. In gold and silver there is
31

also a aesthetic appeal which attracts the people and they consider it as a
value for money.
Buying the gold and silver people feel secure because these are the scarcest and
they can cash it any time at higher price than their original buying price.

The Investment at Glance

a)

FIXED RETURN OPTION

Option & Benefit

Safety

Post Office MP (8%) 10% Bonus On High

Liquidity Return
Good

Good

Low

Moderat

Maturity
N.S.C. (8.16% compounded). Tax High
benefits,
32

No TDS

Kisan Vikas Patra (8.4%) 8yrs. 7mths. High

Low

Moderat

Double Youre Money. No TDS. Loan

Available From Banks against KVP

Senior Citizen Saving Scheme (9%) High

Good

Moderat

Taxable

PPF (8%). Offers tax benefits

High

Low

Moderat
e

Bank

FDs

(between

4.5

-5.5%) High

High

Low

Good

Low

Low

Moderat

Deposits covered by DICGC up to Rs.

1 lakh.
Government Securities, Gilts (5-6%)

High

RBI Taxable Bonds (8%). The interest High

accrued is taxable

Insurance

High

Low

Low

Company FD. Not a recommended Low

Low

Low

Moderat

Moderat

investment

option

in

todays

environment
Infrastructure Bonds

High

b) VARIABLE RETURN OPTION

Option
Mutual

Safety
Fund

Income , Saving Funds

33

Debt, High

Liquidity

Return

Varies

Low

Mutual Fund Equity

Low

Mutual Fund Balance Moderat

Low

High

Good

Moderat

Fund

Share market

Low

Moderate High

Properties market

Moderat

Low

Varies

Research Methodology
Following are the various definitions of marketing research:
34

1) According to Philip Kotler, it is a systematic design, collection, analysis,

of data and relevant to a specific marketing situation facing the
company.
2) According to American Marketing Association, it is the function which
links the customer and the public to the marketer through information
used to identify and define marketing opportunities and the problems;
generate, redefine action; monitor marketing action; monitor marketing
performance and improve understanding of marketing as a process.
Marketing research process:
Marketing research is the systematic design, collection, and analysis of data and
findings relevant to a specific marketing situation facing by the company.

Type of Research:
Descriptive research: descriptive research is chosen for this project, because this
project deals with, knowing the customer preferences for the investment and
knowing customer habits relating to financial services provided by the
consultancy.
Both quantitative and qualitative approaches are used for the project, but more
emphasis is given on the qualitative approach. As we tried to know customers
interested area of investment, so that we can measure their motive
Determining the Sources Of Data Collection:
35

The sources of data collection were primary and secondary source. Primary data
has been used for analysis of the objective of research. As well as secondary
data proved to be helping hand in completion of the project.
Primary data: Primary data are those, which are, collected for the first time, and
it is original in character. In this research, primary data was collected by the use
of questionnaires.
Secondary data: Secondary data on the other hand are those which have already
been collected by someone else and which have already been passed through the
statistical process. In this project secondary data used were, books, magazines,
internet and other project reports.
Reasons for selecting the primary data:
Since the main objective of the project, knew the customer preferences
for the financial service, the best tool that can satisfy all the requirement of data
was the primary data. One needs to have the depth knowledge the customer
views, and their perception and their investment pattern. The information has
been collected through questionnaire.
Thus the primary data have been proved one of the potential approaches in
collection of the information.
Data collection methods:
Methods of data collection used for the project is:
36

Survey method: The tools, which have been undertaken, are

1) Through email
The structured questionnaire has been undertaken to extract the desired
information from the respondents. Also both closed and open-ended questions
are used to determine the perceptions of respondent. To obtain the information,
the questionnaire are mailed to the respective respond, which result in cost
reduction as well as, in a very short period we become able to obtain the
necessary information to carry out the project more effectively and efficiently

2) Personal interview:
It is direct form of investigation involving face-to-face communication
with free feedback information. It offers a sense of the participation. It is more
flexible form of data collection.
Depth interview is possible, complex questions can be asked. Observational
approach can be used to verify income and the intentions of a consumer more
effectively.

3) Sample Unit:
It gives the target population that will be sampled. This research has been
carried only in Asansol & Durgapur city. As the sample which we have chosen
are the people who are working in the IT and software, construction and real
37

estate , companies having handsome salary. These people are always keen to
invest at large extent. Also this is the sample that will consult the consultancy
for the investment decisions.
For this research, target respondents were
- IT & Software executives.
- Professionals working in the organization.
The reason for selecting this sample was these are the people who will consult
the organization for investments, as they are having the potentiality to invest
huge amount of money, and which need the proper guidance about the financial
services in which they are going to invest.
Sample Universe: The universe of research was the Asansol & Durgapur city.
Sample size: A total of 75 respondents were surveyed.
Area of operation: Asansol & Durgapur City

38

DATA ANALYSIS

1) Awareness Of Financial Services

20. 20%
34. 34%

Insurance
Mutual Fund

23. 23%

3. 3%
3. 3%

17. 17%

Bonds
Stock Broking
PPM
Tax Plannning

The graph above shows that awareness about Tax Planning was the highest i.e.
34%.After that 23% people were aware about Mutual funds then comes
Insurance-20%.17% of the people were about Bonds/F.D.s. The least
awareness was found for Stock broking And PPM i.e. 3% each.

39

2) Awareness of Sharekhan

YES
NO

Our sample size was 75, and it was found that only 75% were aware about
Sharekhan & 25% are not aware of Sharekhan.

3)Awareness Of Financial Consultancies

25
12

13
8

Among the Financial consultancies, the highest awareness was for

KARVY-17% then comes ENAM is 16%. For Agents the percentage was
highest as it was 33.33%.

4) Customer awareness From Media

40

25. 22%
17. 15%

20. 17%

3. 3%
Magazines

10. 9%
Newspaper

10.
TV 9%Radio

Agents

Franchise

Hoardings

Refrence

20. 17%
10. 9%

In respect of the customer awareness about financial services from media,

Newspaper and T.V. were on the top most i.e. 20% each. For others, the
percentage was for Magazine-17%, for Radio, Agents, Franchise, and
reference it was 10% each. The lowest was for Hoardings i.e.3% only.

5) Interested In Investment

41

33. 33%
Yes

67. 67%

No

Out of 75 sample unit, 67% of the people were interested in investment, and
only 33% of the people show their disinterest in investment.
6) Areas of investment

3. 3% 7. 7%

27. 27%

Insurance
Mutual Funds

30. 30%

Bonds/FD
Tax Planning
PPM
20. 20%

Stock Broking

13. 13%

Out of sample unit 150, the percentage of people interested in different areas
was as follows:
Tax

Planning-30%,

Mutual

Funds-27%,Insurance-20%,Bonds/F.D.s-

13%,Stock Broking-7% and for PPM only 3%.

6(i) Factors Considered for Investment in Insurance Sector

42

63% of the people say that for the purpose of tax saving they invest in
Insurance sector. Safety was the reason given by another 30% of the people
.And 7% of the people said that it gives high return thats why they invest in
insurance sector.

6(ii) Factors Considered For Investment in Mutual funds

43

43% of the people said that Investing in Mutual Funds Gives high returns.30%
of the people gives the reason as high liquidity.14% of the people said that
investing in Mutual funds helps in capital building, while the next 13% people
give the reason as diversification of risk.

6(iii) Factors Considered for Investment for Tax Planning

44

For tax Planning 75% of the people said that it helps in tax saving, while 25%
said that it is very safe.

6(iv) Factors Considered For Investing In Bonds

45

58% of the people said that Bonds help in Tax Saving while 43% were of the
view that it helps in building capital.

6(v) Factors Considered For Investment in Stock Broking:

46

High return was the reasons given by 55% of the people for their investment in
Stock Broking.45% people give the reason, that it gives high liquidity.

7) Reason of Unwillingness of the People in Respect Of Investment

47

Lack Of Financial Plannings; 17%

High Risk; 23%
High Risk
Lack Of Knowledge
Previous Loss
Lack Of Financial Plannings

Previous Loss; 30%

Lack Of Knowledge; 30%

30% of the people said that because of the previous loss they had suffered they
are not willing to invest. Another 30% of the people said that that due to lack of
knowledge they do not invest in various options. High risk was the reason for
another 23% of the people, while the rest 17%the people said that due to lack of
financial planning they do not invest.

8) Investment Pattern of the People from their Annual Income

48

Investment Pattern As Per The Annual Income

Number of people

50
40
30
20
10
0

20%&above
15-20%
10-15%
5-10%

Financial Services

From the graph following we get the following data:

Financial Services

Annual income
5-10%

10-15%

15-20%

20%& above

Total

Tax planning

10

15

15

45

Mutual funds

10

15

10

05

40

Insurance

08

08

10

04

30

Bonds/FD

05

10

05

20

Stock Broking

05

05

10

PPM

03

02

05

9) Preferable Period of Investment:

49

Preferable Period Of Investment

90
80
70
60
50
Number of People

40
30
20
10
0

Jan-Mar

April-June

July-Sep

Oct-Dec

Months

From the survey we found that for most of the people preferable period of
investment was from Jan-Mar. The least preferable period was from Oct.-Dec.

10) Peoples Preference for Investment through Consultancies

50

Investment Through Consultancies

yes
35%

no

65%

Out of the total sample unit of 150, 65% of the people said that they would like
to invest through consultancies while the rest 35% of the people showed their
unwillingness towards Investment.

FINDINGS

51

1) From the survey it was found that most of them are aware about Sharekhan
as a Financial Service Provider.
2) Among all the services, most of the people were aware about Tax Plannings
and least awareness was for PPM and Stock Broking, so efforts should be taken
accordingly.
3)As far as the brand awareness is considered the Karvy tops the list so, the
companies have to put the extra effort on its awareness, and also the company
has to take maximum efforts on building its marketing strategy.
4) According to the respondents the quality of the service is very important. So
the company should project itself as a brand in the market that gives end user
the best quality of service with handy operations.
5) Most of the respondents have their own personal, consultant or company
consultants. Sharekhan have to differentiate their services from other consultant
effectively by delivering value added services to its customers.
6) Organizations have to concentrate on direct marketing activities. The
consultancy should develop its long-term relationship with the customers.
7) The consultancy must give much more emphasis on creation of customer
who make repurchase.

52

8) The maximum amount of awareness which has been generated is through

newspaper and TV. So the company should take care of it as it can be one of the
potential media for advertisements.
9) The maximum respondents want to invest in tax planning and second
preference for the mutual fund, so the consultancy can decide its strategy
accordingly.
10) The consultancy has to consider the factors for investments of respondents,
effectively before making the strategy.
11) From the survey it founded that the consultancy lacked in after sales service
which is very important in todays business.
12) Consultancy should eliminate the brand myopia as customers can jump on
to their competitors as it is a lucrative market & every player has lot of benefit
to offer to the customers.

53

RECOMMENDATIONS
On the basis of the conclusion, there are few points on which Consultancy
should make improvements.
1) It is important for a consultancy to create awareness about its financial
services more effectively.
2) The customers are expecting frequent and timely correspondence from the
consultancy regarding their funds and the monthly market overview. Therefore
the organization needs to give more weight age on this concern.
3) The company should increase the level of interaction between the customer
and the Consultancy.
4) The organization should focus on developing long-term relationship with the
customers.
5) According to the respondents the quality of the service is very important. So
the company should project itself as a brand in the market that gives end user
the best quality of service with handy operations.
6) Sharekhan should focus on their service segment as customers are highly
dissatisfied with after sales service.
7) Sharekhan should have CRM (Customer Relationship Management) which
will have a greater impact of the company in the minds of the people.
54

8) As the consultancy is selling an intangible product, service plays a very

important role in enhancing the value of the brand in the market.
9) The Relationship Manager is the first leg through which the customers

interact so its very important the consultancy should have a highly efficient
relationship manager so that the customers query get answered & he or she is
highly satisfied & feel good about the company.
10) Seminars should be held for providing information to prospective and
present customers so that they feel secure in investing their money in different
financial products.
For e.g.: If a customer has information on derivatives he may invest in
derivatives but then he should also be informed that the derivatives are highly
risky segments.
11) Sales people of the consultancy should go for training schedules
periodically so that they should be aware of different financial products which
the consultancy is offering and its USP (Unique Selling Proposition).

CONCLUSIONS
As most of the executives who were taken as our sample unit were from middle
class or upper middle class, they have a decent amount of saving. So they are
55

willing to invest in different options only if they are aware about the product
they are getting into.
So it is important for the company, to create awareness about its
financial services more effectively. It is also necessary for the company to
become customer friendly, to solve their query and to provide information as
and when required.

LIMITATIONS

1) The survey and research has been done only in Asansol & Durgapur,
therefore the results show the market position of Asansol & Durgapur
only, so results cannot be considered as representatives of whole India.
56

2) The psychology and temperament of a respondent play a significant role.

Some respondents are more sensitive as against others who are more
tolerant. A change in the composition of the respondent can affect the
answers adversely or favorably.
3) The responses of the respondent may be biased, as they were not true in
answering the questions.
4) Some respondents can be the customers of Sharekhan which can have a
significant impact on their response depending on whether they are
satisfied or dissatisfied.
5) First limitation of this project is the very short time limit.
6) A portion of the respondents are not cooperative.
7) The researcher is inexperienced.
8) Biasness or prejudice of some of the respondents regarding any sort of
the information which is required for such study.
9) Not much of importance was attached to this task by some of the
Respondents.

57

10)

The sample size of the respondents is very small.

11)

The method of sampling is judgment sampling.

BIBLIOGRAPHY
A)

BOOKS:

Principles of Marketing, Philip Kotler & Gary Armstrong, 11th edition,

Prentice Hall of India Private Limites, New Delhi, 2006

58

Economics & Management, A south Asian Perspective, Philip Kotler, Kevin

Lane Keller, Abraham Koshy, Mithileshwar Jha, 13th Edition, Pearson Prentice
Hall, 2009
Marketing Management, Planning, Implementation and control, Global
Perspective Indian Context, V S Ramaswamy & S Namakumari, 3rd Edition,
Macmillan India Limited, New Delhi, 2007
Financial Managemnet, Rajan Saxena, 3rd Edition, Tata McGraw Hill
Publishing Company Limited, New Delhi, 2006
Marketing & Financial Management, 13th Edition, S A Sherlekar, Himalaya
Publishing House, Mumbai, 2007
A global Managerial Approach, 15th Edition, William D Perreault Jr, E
Jerome McCarthy, Tata McGraw Hill, New Delhi, 2006
Marketing Case Study Solutions, 2nd Edition, H Kaushal, MacMillan India
Ltd., New Delhi, 2007

B)

Internet:

1) http://www.icicibank.com/pfsuser/demat/demathome.htm
2) http://www.sharekhan.com/Services/
3) http://www.Equitymaster.com
59

4) http://www.Moneycontrol.com
5) http://www.webindia123.com/finance/post/mis.htm
6) http://nseindia.com/

ANNEXURES

QUESSTIONAIRE
Name: ------------------------------------------------------------------------------Gender

: --------------------------------------------------------------------------

Age : ---------Marital Status: _____________________________________________

60

Occupation: -----------------------------------------------------------------------Company : -----------------------------------------------------------------------Mobile no :------------------------------------------------------------------------Q1) Are you aware of any of the following financial services?
a) Insurance

b) Mutual Funds

c) Bonds /FDs

e) Tax Planning

f) Personal Portfolio Management

d) Stock Broking
g) None of the

above
h) Any other (Plz specify);__________________________

Q2) Are you aware of Sharekhan as Financial Service provider?

a) Yes

b) No

Q3) Are you aware of any of the following Consultancy?

a) ENAM

b) Morgan Stanley

c) ICICI

d) Karvy

e) Agents

f) INDIABULLS

g) Others (Specify) __________

Q4) From which of the following Media you come to know about the Financial Services?
a) Magazines

b) Newspaper

c) T.V.

d) Radio

e) Agents

f) Franchise

g) Hoardings

h) Friends

i) Others

j) Reference

Q5) Do you invest in financial services?

a) Yes

61

b) No

Q6) If yes, in which have you invested?

a) Insurance

b) Mutual Funds

e) Personal Portfolio Mgmt.

c) Bonds /F.D

d) any tax planning

F) Any other (specify)

Q7) If no, what is the reason behind not preferring to any financial services?
a) High risk

b) Lack of knowledge

c) Previous loss

d) Lack of financial

plannings
e) Any other reason ..

Q8)How much percentage do you invest/ would you like to invest from your annual
income?
a) Insurance

1)5-10%

2) 10-15%

3) 15-20%

4) 20% and above

b) Mutual Funds-

1) 5-10% 2) 10-15%

3) 15-20%

4) 20% and above

c) PPM

1) 5-10% 2) 10-15%

3) 15-20%

4) 20% and above

d) Bonds / F.Ds

1) 5-10% 2) 10-15%

3) 15-20%

4) 20% and above

e) Tax Funds

1) 5-10% 2) 10-15%

3) 15-20%

4) 20% and above

Q9) What are your preferable periods for investment?

a) January March

b) April June

c) July September

d) October-December

Q10) Would you like to invest through consultancy?

a) Yes

b) No

Q11) If yes, what all services would you expect from the Consultancy?
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63